The Ranking Member of the House Financial Services Committee, Rep. Maxine Waters (D-CA), and eight House Democrats have introduced legislation to force federal regulators to put any GSIB that fails to meet consumer-protection standards into receivership.  In essence, the fate of the largest U.S. banks, U.S. operations of large foreign banks, and the prospects for investors, uninsured depositors, and counterparties would depend on full adherence to the letter and spirit of national and even state or local consumer-protection provisions or even just the opinions that federal regulators have about these requirements.  Senior officers and directors would also be more easily held strictly responsible for violations and any liquidations resulting from them, with the scope of personal liability set so widely as to discourage most executives and directors from GSIB service.

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